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2. Arbitral Practice 275 3 OXFORD MONOGRAPHS IN INTERNATIONAL LAW General Editors VAUGHAN LOWE QC Essex Court Chambers, London and Emeritus Fellow of All Souls College, Oxford PROFESSOR DAN SAROOSHI Professor of Public International Law at the University of Oxford and Senior Research Fellow of The Queen’s College, Oxford STEFAN TALMON Director of the Institute of Public International Law at the University of Bonn and Supernumerary Fellow of St Anne’s College, Oxford Applicable Law in Investor–State Arbitration This is an open access version of the publication distributed under the terms of the Creative Commons Attribution-NonCommercial- NoDerivs licence (http://creativecommons.org/licenses/by-nc-nd/3.0/), which permits non-commercial reproduction and distribution of the work, in any medium, provided the original work is not altered or transformed in any way, and that the work is properly cited. For commercial re-use, please contact [email protected] OXFORD MONOGRAPHS IN INTERNATIONAL LAW The aim of this series is to publish important and original pieces of research on all aspects of international law. Topics that are given particular prominence are those which, while of interest to the academic lawyer, also have important bearing on issues which touch the actual conduct of international relations. Nonetheless, the series is wide in scope and includes monographs on the history and philosophical foundations of international law. recent titles in the series The International Minimum Standard and Fair and Equitable Treatment Martins Paparinskis The Margin of Appreciation in International Human Rights Law Andrew Legg Individual Criminal Responsibility in International Law Elies van Sliedregt Extraterritorial Application of Human Rights Treaties Law, Principles, and Policy Marko Milanovic Disobeying the Security Council Countermeasures against Wrongful Sanctions Antonios Tzanakopoulos Maritime Security and the Law of the Sea Natalie Klein This is an open access version of the publication distributed under the terms of the Creative Commons Attribution-NonCommercial- NoDerivs licence (http://creativecommons.org/licenses/by-nc-nd/3.0/), which permits non-commercial reproduction and distribution of the work, in any medium, provided the original work is not altered or transformed in any way, and that the work is properly cited. For commercial re-use, please contact [email protected] Applicable Law in Investor–State Arbitration The Interplay Between National and International Law HEGE ELISABETH KJOS 1 This is an open access version of the publication distributed under the terms of the Creative Commons Attribution-NonCommercial- NoDerivs licence (http://creativecommons.org/licenses/by-nc-nd/3.0/), which permits non-commercial reproduction and distribution of the work, in any medium, provided the original work is not altered or transformed in any way, and that the work is properly cited. For commercial re-use, please contact [email protected] 3 Great Clarendon Street, Oxford, OX2 6DP, United Kingdom Oxford University Press is a department of the University of Oxford. It furthers the University's objective of excellence in research, scholarship, and education by publishing worldwide. Oxford is a registered trade mark of Oxford University Press in the UK and in certain other countries # Hege Elisabeth Kjos, 2013 The moral rights of the authors have been asserted First Edition published in 2013 Impression: 1 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, by licence or under terms agreed with the appropriate reprographics rights organization. Enquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above You must not circulate this work in any other form and you must impose this same condition on any acquirer Crown copyright material is reproduced under Class Licence Number C01P0000148 with the permission of OPSI and the Queen’s Printer for Scotland British Library Cataloguing in Publication Data Data available ISBN 978–0–19–965695–0 Printed and bound in Great Britain by CPI Group (UK) Ltd, Croydon, CR0 4YY Links to third party websites are provided by Oxford in good faith and for information only. Oxford disclaims any responsibility for the materials contained in any third party website referenced in this work. This is an open access version of the publication distributed under the terms of the Creative Commons Attribution-NonCommercial- NoDerivs licence (http://creativecommons.org/licenses/by-nc-nd/3.0/), which permits non-commercial reproduction and distribution of the work, in any medium, provided the original work is not altered or transformed in any way, and that the work is properly cited. For commercial re-use, please contact [email protected] Acknowledgements ‘International investment law is one of the fastest-growing areas of international law today. Only a decade ago, the current surge in investor–state arbitrations [ . ] was beyond imagination.’1 It was just a bit more than a decade ago that I was fortunate to enter the field of international investment arbitration. The rise in the number of arbitrations and the accompanying growth in scholarship partly explain the time it has taken to present this study. Relatedly, the fact that I have been examining a ‘moving target’ has made the process more stimulating. I feel privileged to be able to continue to work in this area that brings together so many facets of the law; the ‘field trip’2 is not over. In this respect, I am especially grateful to be part of the project ‘International Law through the National Prism: the Impact of Judicial Dialogue’ funded by the European Science Foundation as a European Collaborative Research Project in the Social Sci- ences, as it has allowed me to explore more deeply the larger theme of this book: the interactions between the national and the international legal orders. There are many to thank now that the book is published. In addition to the great OUP team and then especially the Monograph Series Editors, Merel Alstein and Anthony Hinton, I mention in particular André Nollkaemper for believing in the project and for his sharp guidance; the late Thomas W. Wälde, for giving me confi- dence and inspiration; and Sabine Schlemmer-Schulte and Ruth Teitelbaum for their direction and friendship. I am also thankful to the distinguished Members of the Doctoral Committee3 and Antonio Parra for their valuable comments and suggestions to the doctoral thesis which forms the basis of this book; as well as Nwamaka Okany, Yannick Radi, and Anthony Battah, especially, for our discussions. In addition to the European Science Foundation, I gratefully acknowledge the (financial) support of the Netherlands Organization for Scientific Research; the Hague Academy of International Law, Centre for Studies and Research in International Law and International Relations; and the School of International Arbitration, Queen Mary, University of London. Warm thanks are also due my friends at the University of Amsterdam for making me feel at home in the Netherlands and convincing me that I have the world’s best colleagues. Next to Danielle Obradovic, Thomas Vandamme, Martine van Trigt, Jim Mathis, Ronald van Ooik, Betty Kremer, Willem van Merle, Annemarieke Vermeer- Künzli, Ingo Venzke, Machiko Kanetake, Esther Kentin and Heather Kurzbauer; these include my brilliant fellow pionieren: Geranne Lautenbach, Ward Ferdinandusse, Jann Kleffner, Nikos Lavranos, Janne Nijman, and Fabián Raimondo. To other dear friends in various corners of the world: thank you for adding sparkle to my life, each in your own way. I would like to dedicate this book to my family in Norway and the Netherlands, and then especially to my husband Bertil—I could not have wished for a better partner and 1 S.W. Schill, Book Review, Principles of International Investment Law (2009) 20(2) Eur. J. Int’lL. 471 (reviewing R. Dolzer and C. Schreuer, Principles of International Investment Law [Oxford, Oxford University Press, 2008]). Cf. A. Diehl, The Core Standards of International Investment Protection (2012), 1 (‘Little more than a decade ago, investment arbitration was virtually unknown beyond the circles of those who were involved in the negotiation of investment treaties’). 2 See Chapter 8 (concluding observations). 3 Catharina Brölmann, Filip De Ly, Pieter Jan Kuijper, André Nollkaemper, Christoph Schreuer, Nico Schrijver, Ole Spiermann, and Erika de Wet. The Honorable Charles N. Brower served in the role of independent expert. This is an open access version of the publication distributed under the terms of the Creative Commons Attribution-NonCommercial- NoDerivs licence (http://creativecommons.org/licenses/by-nc-nd/3.0/), which permits non-commercial reproduction and distribution of the work, in any medium, provided the original work is not altered or transformed in any way, and that the work is properly cited. For commercial re-use, please contact [email protected] vi Acknowledgements a father for our daughters; to my Mamma and role model Kari, for everything, always; and to my Pappa, Per-Arne, for giving me perspective and love. Last but not least, I dedicate it to Nora Sofie and Kari Helena for making me smile inside and out, each and every day. I love you. Hege Elisabeth Kjos, Amstelveen, 18 September 2012 This is an open access version of the publication distributed under the terms of the Creative Commons Attribution-NonCommercial- NoDerivs licence (http://creativecommons.org/licenses/by-nc-nd/3.0/), which permits non-commercial reproduction and distribution of the work, in any medium, provided the original work is not altered or transformed in any way, and that the work is properly cited. For commercial re-use, please contact [email protected] Table of Contents Table of Cases ix Table of Legislation xxi List of Abbreviations xxviii 1. General Introduction 1 1.
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